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I can't think of why else they would drive down price? (I mean this in the non-rhetorical sense... I'm genuinely curious and haven't read a convincing explanati
by andys627 11y ago
I can't think of why else they would drive down price? (I mean this in the non-rhetorical sense... I'm genuinely curious and haven't read a convincing explanation)
- yxhuvud 11y agoThey need the money. Why would it be more complicated than that?
- andys627 11y agoDo they? Please provide source...
- myNXTact 11y agohttp://m.csmonitor.com/World/Global-News/2015/1023/Saudi-Arabia-could-run-out-of-financial-assets-within-five-years-IMF-warns http://m.csmonitor.com/World/Global-News/2015/1023/Saudi-Ara...
- gchokov 11y agoWhat source would you want? Everybody needs money even if they have enough. Please stop this "provide source" movement for obvious things.
- seren 11y agoExpensive war (or military operations whatever you want to call it) in Yemen, plus falling oil price means KSA have issued bonds for the first time in a long time : http://www.wsj.com/articles/saudi-arabia-issues-bonds-worth-5-billion-to-plug-budget-shortfall-1439305126 http://www.wsj.com/articles/saudi-arabia-issues-bonds-worth-... So yes, they somehow need some cash.
- cmdkeen 11y agoBut they get the money by having a much higher oil price. Saudi needs oil to be $106 a barrel to balance it's budget, up from in the $50s in 2010. You can't pump your way to profit, that's why OPEC operated as a cartel, though recently that seems to have gone out the window. Saudi pumping the amount it does drives down the price of oil. They have massive amounts of money so can last for a few years running the kind of deficits are now, though not forever. The question is why they are keeping the price artificially low.